8-KMaterial AgreementsFinancial EventsExhibits & Filings

VALERO ENERGY CORP/TX 8-K Report, Material Agreement (Nov 13, 2015)

Filed November 13, 2015For Securities:VLO

Summary

Valero Energy Corporation (VLO) has amended and restated its existing revolving credit agreement, enhancing its financial flexibility. The updated agreement, effective November 12, 2015, extends the maturity date by two years to November 12, 2020, providing a longer-term funding source. Importantly, the company has also secured reduced commitment fees and interest rates, indicating improved borrowing costs and potentially a stronger financial position. This move underscores Valero's proactive approach to managing its capital structure. The expanded credit facility of up to $3.0 billion, with an option to increase it to $4.5 billion, offers significant liquidity for general corporate purposes, including potential debt refinancing. This updated credit arrangement provides investors with confidence in Valero's ability to meet its financial obligations and pursue strategic opportunities.

Key Highlights

  • 1Valero Energy Corporation amended and restated its revolving credit agreement on November 12, 2015.
  • 2The maturity date of the credit facility has been extended by two years, now maturing on November 12, 2020.
  • 3The company secured reduced commitment fees and interest rates, indicating a favorable cost of borrowing.
  • 4The aggregate principal amount of the revolving credit facility is $3,000,000,000, with an option to increase it by up to $1,500,000,000 to a total of $4,500,000,000.
  • 5Proceeds from the credit facility are designated for general corporate purposes, including potential refinancing of other indebtedness.
  • 6The agreement includes customary affirmative and negative covenants and events of default.
  • 7JPMorgan Chase Bank, N.A. continues to serve as the Administrative Agent.

Frequently Asked Questions

Valero Energy Corporation amended and restated its existing revolving credit agreement. The key changes include extending the maturity date by two years to November 12, 2020, and reducing the applicable commitment fees and interest rates.

The amended and restated credit facility provides for a revolving credit facility in an aggregate principal amount of up to $3,000,000,000. Furthermore, Valero has the option to increase the revolving commitments by up to an additional $1,500,000,000, bringing the total potential revolving commitment to $4,500,000,000.

The proceeds from the credit facility are intended for Valero's general corporate purposes. This may include, at the company's discretion, the refinancing of other existing indebtedness.

The amendment provides Valero with extended financial flexibility due to the longer maturity date. The reduction in commitment fees and interest rates also lowers the cost of borrowing, which can positively impact profitability and cash flow. The increased borrowing capacity offers greater liquidity for operational needs and strategic initiatives.